HumanSphere Business Models [Circular Economy 2.5]

HumanSphere Business Models

Valuing Humans first in a Circular Economy

 (This is a follow-up of the previous Circular Economy 2.0 (the Foundations), Don't just ReUse ReValue Instead! CE2.1, Doing More with More, not Less! CE2.2, Safe & Just Circular Principles CE2.3 and HUMANSPHERE added articles)

LABOUR IS HIGHLY VALUED

According to Walter R. Stahel, one requires three times more manpower within an advanced circular economic scenario in comparison to the questioned linear economic model currently implemented, in both advanced (emerged/stagnating) or advancing (emerging/expanding) markets.

In such a context, Professor Stahel explains that we have our limited resources - i.e. the technical and biological nutrients - on one hand (circulating within the Technosphere as well as within the Biosphere), and on the other hand, us - i.e. all humans or unlimited resources, represented here as an endless stock of energy with the sole purpose of maintaining, preserving and enhancing the quality of the nutrients entering into our economy.

With such a simple rule one could therefore define what the world of businesses of tomorrow would be like: based on out-of-the-box innovative solutions relying on manpower-first to safely and justly involve humans within the new economy (in reference to the proposed Safe & Just Circular Principles). Humans would thus be considered as a valued common denominator making the link between the natural world and the technical world.

Yet, foreseen circular solutions today tend to position technologies-first, without questioning the involvement of humans, when searching for answers designing externalities out (social and environmental ones in reference to the Circular Economy 2.0 concept).

THE NEED FOR A HUMANSPHERE

In order to place humans in pole-position within our next economy, we will have to re-focus on Stahel's suggestion to free goods and services, that are desired to re-build our ecosystems, from taxes: labour for instance or any unlimited resources or energies, on one hand. And, on the other, tax everything which represents a threat to our own survival (i.e. not desired): fossil fuels or any limited resources. This means that when it comes to robots and machineries, they will also have to be taxed as they rely on metals, minerals and fuels that are in diminishing availability in a soon 9 billion inhabitants' planet.

Sweden is showing the way with its recent announcement of slashing VAT (from 25% down to 12%) on any activities involved with maintaining technical nutrients value, i.e. the repairing economy: fixing bikes, washing-machines or pieces of furniture are now preferred. On top of this, the coalition in power is busy submitting "a proposal that would allow people to claim back from income tax half of the labour cost on repairs to appliances such as fridges, ovens, dishwashers and washing machines."! This is a clear sign of encouragement of the reuse and/or revalue flows (in reference with Don't just ReUse, ReValue instead!) of goods circulating longer within the same hands or the same markets, extending life of repairable linear products (i.e. not meant to fully circulate easily within markets as yet).

Another example is telling us that this approach of protecting and prioritizing humans make sense: last June, the European Union has suggested that they would recognize robots as "electronic persons" (EU draft report) having legal rights in order to claim social security taxes (from their employers).

In a 9bn people world, human-based resources & services will abound

For all these reasons, there is the need to re-position humans at the centre of the circular economy, with the aim of developing solutions allowing them a "right-of-way", before choosing technical alternatives (i.e. machines and/robots). To this extent, one needs to also recognize that the Biosphere has the priority over the Humansphere, the latter having it over the Technosphere - this is should become the Golden Circular Rule (as described in HumanSphere added).

The Completed "Butterfly Diagram"

For instance, and based on the limited/unlimited resources thinking, one would choose innovative approaches using human-as-power first. If this is not a feasible solution, one would then look at technologies-as-extension of the human performances. Lastly, the standalone machine-based option would then be implemented but, taxed more than the human-only choice - since the latter is not taking advantage of the endless human energies available, rather replacing what is already existing.

BioSphere > HumanSphere > TechnoSphere is the Golden Circular Rule

SEEING A DIFFERENT PICTURE

By inserting a Humansphere within the "Butterfly Diagram" of The Ellen MacArthur Foundation (representing, in the first place, the migration from a linear world to a circular world), one could now see a different, yet highly positive picture of "our role" in this greater future: moving from the negative-Anthropocene era where humans are the cause of ecosystem de-regulations, into a potentially second part of a world where humans dominate in numbers, yet re-building ecosystems: the positive-Anthropocene period. Think of the famous example of the ants: they weight twice as much as all of us, yet they regenerate our ecosystems! Why not replicating their strategy? Why can't we be at the origin of renaissance of the biosphere we depend on? Why not? Besides, do we have any other choices here? If we go down that route, a growing number of humans is no longer seen as our darker future, but as a stock of energies and matters, much needed for the rebuilding of our systems.

Potential Value & Roles Humans could bring to the two nutrient Spheres

HUMANSPHERE BUSINESS MODELS

Joining the dots between the Biosphere and the Technosphere, one could foresee two main business models prioritizing humans:

1. Humans-as-a-Resource

This model can be related to our current "Circular Input Supplies" (coined by Accenture). In this Input Model, humans are nature. In their relations with the Biosphere, Humans represent numerous flows of energies, patterns, knowledge, functional characteristics and matters that are made by nature to preserve the diversity, regeneration and replenishment of biological cycles. While one might have issues with our own belief system, this suggestion - built on the approach of biomimicry where we are asked to "reconnect with nature" - leads us into "being nature". From the reconnect exercice the biomimicry is asking us to achieve, we are now fully "part of" it, or embedded within it.

Humans = Nature

This could translate into looking at cascading our knowledge in advanced forms of intelligence, at developing collaborative abilities to physically rebuild our ecosystems, at using exponential energies when joining forces, at developing our body patterns for system replenishment, while re-valuing some of our matters and functions.

An example that could help us start thinking of a Humans-as-a-Resource strategy is the Sanergy franchise model in Kenya: franchise operators offer fresh, clean and working sanitation pay-per-use services to customers of a settlement, previously under-valued resources are collected and converted into organic fertilizers for soils regeneration, insect-based animal feed and renewable energy. In this model, humans are embedded as a critical component of nature's regeneration (where fertilizers were previously accessed at high transportation costs from overseas) while providing a safe and durable access to animal feed (previously unsafe sources and costly processes), while generating renewable and affordable energy sources and durable jobs.

Source: Saner.gy

Replicated at wider scale, this model could have huge and positive ripple effects

2. Humans-as-a-Service

This is our "Circular Output Model" (Accenture) where we aim at recovering technical nutrients and keep their value as high as possible at all times. Here humans are power. In their relations with the Technosphere, humans represent this endless energy required to maintain our stock of materials in use for the longest period possible within our economy (Stahel). In this model, the manpower value of humans-as-a-service is higher than the one of robots-as-a-service, in remanufacturing, repairing and maintaining activities. This "value" needs to be recognized in our return on investment calculations (or accounting for Value exercises).

Humans = Power

On top of this, a product-as-a-service, the circular smaller loop (and higher financial profits) where services are using humans over machines, should be preferred by States, thus not taxed at all. The total cost of preserving humans in activity (health, happiness, pride, etc.) will have to also be accounted for when taking business or public decisions over an investment in service to customers, to suppliers, to citizens or to beneficiaries. There are methods that enable this accounting measurements to be recognized in monetary terms. The Social Return on Investment (SROI) being one. There are others. This is therefore doable and commendable.

An amazing example from Ghana, East Africa, is the Suame cluster in Kumasi. Since the 80's, the then 40,000 workers have been involved in the repairing, recycling and life extension of cars, lorries and buses in circulation in the country. Given that imported vehicle parts were - and still aren't - available, this cluster has been maintaining transportation vehicles on the roads of Ghana for over 30 years. There are now 12,000 businesses employing over 200,000 people working in this cluster. The situation is in no means an enviable one (poverty, lack of resources, etc.), but the ability of humans to re-invent themselves when scarcity of resources could be a barrier, using human knowledge and capabilities, is the point highlighted here.

Source: OMGGhana.com

NUMEROUS HUMAN FLOWS

The graph below - a modified version of The Ellen MacArthur Foundation "Butterfly Diagram" - highlights the countless flows of humans-as-a-resource in their relations with the Biosphere, and the countless flows of humans-as-a-service in their relations with the Technosphere. One has to remember that one job is created in an incineration based economy, 6 in a landfill-based one, 36 in recycling one, and nearly 300 in a reusing/sharing economy. This model goes beyond into embedding humans-first in both spheres. This "integration" exercise might not be counted in number of jobs, rather activities and roles in regenerating and maintaining those spheres' value.

Biosphere & Technosphere flows and their potential needs for intense uses of humans

NOT (JUST) ABOUT CREATING JOBS...

The aim of inserting a Humansphere in-between the Biosphere and Technosphere is not just about creating jobs as we know of them today. The ultimate objective here is to provide critical new human roles as part of the wider system we depend on. This Humansphere and its business models are about "integration". Humans have to play their key roles at two levels:

1. Humans are embedded into natural cycles with the aim of re-building our ecosystem;
2. Humans are embedded into techno-cycles with the aim of maintaining the value of our techno-system;

With this conceptual approach of us - humans - as integral part of our wider ecosystem, one would develop numerous ideas and businesses that aim at using the many resources our body nutrients, body movement and other energies can - jointly or individually - help restore it by intention and/or by design.

Thanks to the Golden Circular Rule, we would first aim at preserving our natural capital as currently suggested by the first principle of The Ellen MacArthur Foundation, we would then aim at an integrated role for humans via countless innovative activities that need to be re-think. Lastly, once the ecosystem is being preserved, once all options of involving humans have been tested (humans alone, machines assisted by humans, machines as an extension of human power/energy flows/knowledge and so on), then the machine-only solutions could be designed from the Technosphere stock, should it add value to a role that humans can not do today, or just as yet...

As described in the core concept of these Humansphere Business Models: the Circular Economy 2.0 (aiming at also eradicating poverty using the "Circular Thinking"), businesses will have to take such decisions in a new value-based dimension where corporate and individualistic successes will be part of the wider creation of value: the more value we generate to our systems, the higher our achievements will be considered in our lifetime.